UNITED STATES

U.S. retail chain, Eddie Bauer Holdings Inc. filed Wednesday for Chapter 11 bankruptcy protection and entered into a deal worth $202 million with a private equity firm to buy the company’s assets.

NEW YORK, June 17 Reuters) - Ten of the largest U.S. banks said on Wednesday they repaid more than $68 billion of taxpayer bailout funds, as they race to extract themselves from government restrictions on pay for top executives.

(Corrects number of banks in first bullet point, corrects index closing level in third bullet point, updates total repayment figure to $68 bln in bullet point and paragraph 1)

Technology shares buoyed the Nasdaq on Wednesday after positive broker comments on Qualcomm, but financial shares' losses held back the Dow and the S&P 500.

U.S. consumer prices rose slightly in May, but over the past 12 months prices registered the biggest drop in nearly 60 years, allaying fears that inflation could threaten prospects for economic recovery.

(Corrects comment initially sent at 11:58 a.m. to change number of banks downgraded by S&P to 18 in second bullet and lead paragraph)

U.S. stocks were mixed on Wednesday, weighted by a downgrade of 18 banks by Standard and Poor's and a disappointing earnings outlook from economic bellwether FedEx Corp .

Utility companies UniStar Nuclear Energy LLC, NRG Energy Inc., Scana Corp and Southern Co., are likely to be the government's picks for building the next generation of nuclear reactors in the U.S., according to a report from the Wall Street Journal citing interviews to government and energy companies officials as well as reactor vendors.

President Barack Obama laid out his vision for recrafting U.S. financial regulation on Wednesday, vowing to halt a cascade of mistakes ... over the course of decades that eroded bank and market oversight.

AT&T Inc yielded on Wednesday to customer complaints and agreed to extend its best upgrade price to previous iPhone buyers eager to get their hands on Apple Inc's new model, which goes on sale Friday.

President Barack Obama said Tuesday that today’s antiquated U.S. financial system puts “American dreams” in “consistent danger,” as he announced his proposals to change the laws which govern how financial companies are run.

(Corrects unofficial close to remove 22 and read several in reference to S&P's debt downgrades of banks)

U.S. Senator John Ensign resigned from a party leadership post on Wednesday a day after admitting an extramarital affair with then campaign treasurer, Cynthia Hampton.

Oil rose on Wednesday, supported by government data showing a drop in U.S. crude supplies, gains in the stock market and a weaker dollar.

Stocks climbed on Wednesday, led by technology and biotech stocks, while declining financial shares reined in the Dow's and S&P's gains after a broad debt ratings downgrade on banks.

Sirius XM Radio subscribers will be able to download software on June 18 that lets the satellite radio service's programing play on Apple Inc's iPhone.

Oil prices fell on Wednesday after a U.S. government report showed a surprise increase in gasoline supplies in the world's top consumer heading into summer driving season.

Watson Pharmaceuticals Inc said on Wednesday that it would buy privately held Arrow Group for $1.75 billion, clinching a long-expected deal by the U.S. generic drugmaker to expand internationally.

Russia hopes U.S. President Barack Obama will not pursue his predecessor's plan to deploy weapons in space but Moscow is ready to respond appropriately to any such moves, a senior Russian general said on Wednesday.

Oil prices fell below $70 a barrel on Wednesday, after a U.S. government report showed a surprise increase in gasoline supplies in the world's top consumer heading into summer driving season.

Package delivery giant and U.S. economic bellwether FedEx Corp said the next two quarters will be extremely difficult as the recession and higher fuel prices bite into its bottom line, but said the pace of economic decline appears to be slowing.